Finance Minister Sri Mulyani officially designated e-cigarettes in the form of liquids and heating devices in one unit (cartridge) as part of other tobacco processing products (HPTL). With this stipulation, cartridges become excisable goods (BKC).
Director of International Customs and Interagency of the Directorate General of Customs and Excise, Syarif Hidayat, stated that the imposition of excise on electric cigarette cartridges is stipulated in the Minister of Finance Regulation (PMK) No.176 / PMK.04 / 2020.
“The stipulation of the cartridge as BKC is stated in the addition of the substance of Article 1 paragraph 18 of the PMK which classifies cartridges in the tobacco extract or essence category, so that it is a new type of HPTL,” Syarif said, as quoted by Antara, Friday (20/11).
He explained that the PMK regulates new provisions; HPTL is a tobacco product made from tobacco leaves other than cigarettes, cigars, leaf cigarettes and sliced tobacco.
It is made following technological developments and consumer tastes, including tobacco extracts and essences, snorted tobacco, or chewing tobacco.
Syarif ensured that tobacco extracts and essences were included and provided for consumers in retail sales packages, then consumed by heating using an electric heating device and then smoked.
These products include, among other things, liquids used as filler for vapes, electrically heated tobacco products, tobacco capsules, or liquid and heater in one unit (cartridge).
The PMK also affirms that excisable goods whose excise is paid by attaching excise stamps or affixing excise payment marks, whose retail packaging contents are not suitable, including cartridges, are deemed to have violated the provisions of laws and regulations.
Furthermore, through the PMK, the Ministry of Finance also expanded the definition of packaged goods for retail. In the previous PMK, packaging was goods whose excise payment was carried out by attaching excise stamps, or affixing other markings of excise payment must be carried out in one package.
However, through the new PMK, the definition of packaging is added to be packaging that is in direct contact with excisable goods and can only be opened on one side. “So this is also an affirmation, that excisable goods that are not packaged according to the contents of the packaging stipulated in this PMK, violate the provisions,” Syarif said.